Surety completes Ohio fire station after original contractor defaults | Contractor resolves False Claims Act accusations over disadvantaged business status | Construction unaffected as some states roll back or pause reopening
July 15, 2020
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Leading News
A new fire station has opened in Reynoldsburg, Ohio, after a surety company completed the $3.9 million construction project. The surety stepped in after the original general contractor's voluntary default in 2019.
Full Story: ThisWeek Community News (Lewis Center, Ohio) (7/13) 
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An Illinois contractor will pay $1 million to resolve allegations that it improperly represented itself as a disadvantaged small business and thereby violated the False Claims Act. The federal government accused the company of intentionally misrepresenting itself and falsifying documents to qualify for contracts on an airport project.
Full Story: The National Law Review/Tycko & Zavareei (7/9) 
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Continuity Planning: Situations & Lessons From the Field
A business continuity plan can help to ensure a smooth transition when a company changes hands. This is especially the case if an owner dies suddenly. A formal plan gives the company's family, employees, and customersā€¦ and the surety, assurances that the company will be able to stay in business. Read Moreā€¦
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Industry News
Construction unaffected as some states roll back or pause reopening
(Al Bello/Getty Images)
Some states have rolled back or delayed reopening plans because of spikes in coronavirus cases in the recent weeks. However, construction has generally remained unaffected by those changes because many projects are considered essential.
Full Story: JD Supra/Pillsbury (7/9) 
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The US Court of Appeals for the 8th Circuit, in St. Louis, has reversed a federal district court decision granting summary judgment to a surety that denied a bond claim over an alleged breach of federal law. The lower court held that the prime contractor in the case had subcontracted more work than federal law allows, but the appeals court remanded the case for further consideration.
Full Story: Business Insurance (tiered subscription model) (7/9),  Reuters (7/9) 
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Risk & Compliance
The coronavirus pandemic likely will have several long-term effects on construction contracts, two attorneys write. Among such changes are the increased importance of documentation and force majeure provisions' influence on how parties address risk, they write.
Full Story: Law360 (free content) (7/9) 
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Association News
NASBP Blog: PPP applications extended until Aug. 8
NASBP Blog: PPP applications extended until Aug. 8
(Pixabay)
The Paycheck Protection Program application deadline was recently extended to Aug. 8, giving borrowers more time to access the program and the approximately $130 billion remaining in funding. Read this NASBP blog from attorneys at Womble Bond Dickinson LLP for more on the application extension, as well as updates on PPP loan forgiveness, and the released borrower details. Read more. Make sure to read the many other NASBP blogs on the Paycheck Protection Program.
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Don't miss the July 22 NASBP Virtual Event: Being Present and Connecting Surety in a Digital World
Don't miss the July 22 NASBP Virtual Event: Being Present and Connecting Surety in a Digital World
Clockwise from top left: Mendelson, Specht and Mann (NASBP)
Make sure to register for the next NASBP Virtual Event! Join us from 1 p.m. to 3 p.m. Eastern on Wednesday, July 22, for Being Present and Connecting Surety in a Digital World, where you'll see two informative presentations. The first, by Zach Mendelson of EPIC and Mike Specht of INSURICA Southwest, will unveil the new NASBP Producer Communications Toolkit 2.0. They will share their experiences with the Toolkit, and you will learn about new components that will help you talk about surety with stakeholders in the new normal. The second portion of the program will feature a keynote presentation from international presenter and trainer Scott Mann of Rooftop Leadership. Tom Padilla of HUB International and Past NASBP President said this of Mann: "Scott Mann speaks and leads from experiences where life literally depends on connecting ... [T]he lessons you will learn will be well worth every minute you spend to tune in." Register now!
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NASBP podcast "Let's Get Surety" discusses what the PPP means for surety companies
NASBP podcast "Let's Get Surety" discusses what the PPP means for surety companies
Callahan (NASBP)
NASBP's podcast "Let's Get Surety" is back with a new episode! In "Paycheck Protection Program and Surety Bonding -- Part 2 of 2," Jack Callahan, CPA, Partner-Construction Industry Leader at CohnReznick, discusses what the Paycheck Protection Program means for surety companies. Callahan examines how contractors' PPP loan debt and deferred payroll taxes will appear on their financial statements and may show the need to re-evaluate the ratios that are used to examine a contractor's financials. He also shares information on loan forgiveness. Access this and other "Let's Get Surety" episodes from any of these systems: Apple Podcasts, Google Podcasts, Spotify, Stitcher or SuretyLearn. Be guaranteed to succeed!
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Trends & Technology
Technology can play a crucial role in enhancing construction companies' safety cultures during the coronavirus pandemic, a construction executive says. He offers seven measures to adopt, including online training, an app to track employees' health, and telemedicine services.
Full Story: ForConstructionPros (7/13) 
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Opinion Poll
What level of risk do international construction projects pose during the coronavirus pandemic?
Much higher
 47.06%
Somewhat higher
 41.18%
The same as usual
 5.88%
Lower
 0.00%
Not sure
 5.88%
POLL QUESTION:
Is the Paycheck Protection Program creating challenges in examining contractors' finances?
VoteYes, in many cases
VoteYes, somewhat
VoteNo
VoteNot sure
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If you know you're right, you don't care. You know that sooner or later, it will come out in the wash.
Barbara McClintock,
cytogeneticist, Nobel Prize winner
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About NASBP
Founded in 1942, NASBP is the association of and resource for surety bond producers and allied professionals. NASBP producers specialize in providing surety bonds for construction contracts and other purposes to companies and individuals needing the assurance offered by surety bonds.

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Contact NASBP
National Association of Surety Bond Producers
7735 Old Georgetown Road, Suite 900
Bethesda, MD 20814

Phone: 240-200-1270
Fax: 240-200-1295

info@nasbp.org
www.nasbp.org
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